The London-listed securities of Commercial International Bank (CIB) are indicating expectations of another devaluation of the Egyptian pound, Bloomberg reported on April 12th.

CIB’s listed certificates of deposit (CDs) on the London Stock Exchange are trading at a 31% discount to their shares on the Egyptian Exchange (EGX), marking the largest difference since August 2016.

Hassan Malik, a strategist at Telemer in Dubai, told Bloomberg that this reflects projections that Egypt would allow another depreciation of its currency.

“The unwillingness to move to a fully flexible currency means another chunky devaluation is coming,” he commented.

Earlier this month, Goldman Sachs reportedly said that financing options for Egypt have become limited in light of the difficulty in accessing the capital markets, as the Gulf governments prefer direct investment over lending, in addition to the International Monetary Fund’s (IMF) reluctance to provide more financing to Egypt.

Copyright © 2022 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).